Pearson Electric Company Uses the High-Low Method to Analyze Mixed

question 19

Multiple Choice

Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.How should the cost function be properly stated using the high-low method?

• A) Y = $6,025 + $2.00H.
• B) Y = $6,520 + $3.00H.
• C) Y = $6,085 + $2.00H.
• D) Y = $6,250 + $3.00H.